A new LendingTree study highlights a serious retirement-planning risk: Many Americans are treating an expected inheritance as part of their financial foundation, even though the money, timing, and final amount remain uncertain.
Among Americans younger than 65 who expect to receive an inheritance or financial gift, 81% say they are relying on it to fund retirement to some degree:
- 43% say they are counting on it a great deal
- 38% say they are counting on it somewhat
- Only 25% say the possibility of an inheritance has not affected their retirement planning
LendingTree commissioned QuestionPro to survey 1,585 U.S. consumers ages 18 to 64 from July 2 through July 8, 2026. The survey used a nonprobability-based sample with quotas designed to reflect the broader population.
The study also found that 33% of Americans younger than 65 expect to receive an inheritance or financial gift in the future. That figure rises to:
- 53% among people earning $100,000 or more
- 43% among Gen Z adults ages 18 to 29
- 46% among parents with children younger than 18
At the same time, only 43% of Americans age 65 and older say they plan to give an inheritance or financial gift.
That difference creates what personal finance professionals call an expectations gap. One generation may be planning around money that the other generation does not intend to leave, cannot afford to leave, or may not be able to preserve.
The study’s broader wealth-transfer estimate is substantial. LendingTree projects that homeowners age 65 and older could transfer approximately $17.2 trillion between 2026 and 2045, an average of about $859 billion per year.
Those figures come from a model based on older homeowners’ property values, broader household wealth, mortality rates, and an estimated share of assets eventually transferred to heirs. The study used a wealth multiplier of 4.5, an heir share of 65%, and mortality rates based on Social Security Administration data.
Read the LendingTree wealth-transfer study for the complete methodology and state-level estimates.
Why it matters
An inheritance can be financially meaningful. It may help someone pay off high-interest debt, purchase a home, start a business, build an emergency fund, or retire with greater security.
But an inheritance is not the same as money already in your bank account. It is a future possibility affected by variables that may be outside your control.
Matt Schulz, LendingTree’s chief consumer finance analyst, summarized the issue this way:
“A future inheritance should generally be treated as a potential upside rather than a core retirement strategy.”
That distinction matters because retirement planning is built on cash flow. You need to know how much income you will have, how much you will spend, and how your resources will hold up over time. A future inheritance may not arrive when you need it, and it may be smaller than expected.
Long-term care can consume family wealth
Retirement can last 20 or 30 years. During that period, parents or other potential benefactors may need extensive medical care, assisted living, home health services, or nursing care.
Those costs can substantially reduce the value of an estate. LendingTree’s model assumes that only 65% of the relevant wealth will ultimately be transferred after long-term care costs, taxes, and other drawdowns.
That does not mean every family will lose 35% of its assets. It does mean the amount available to heirs is not equal to the value of a parent’s home, investment accounts, or other property today.
Inflation changes what an inheritance can buy
Suppose someone expects to receive $300,000 in 20 years. That amount may sound significant, but inflation could reduce its purchasing power substantially.
The issue is not only whether an inheritance arrives. It is also whether the inheritance will still be large enough to support the retirement lifestyle the heir has imagined.
Market losses can affect inherited investments
An estate may include stocks, mutual funds, retirement accounts, or business interests. The value of those assets can rise or fall before they are transferred.
A market decline near the time of death could reduce the value of investment accounts. A beneficiary may also need to sell assets during an unfavorable market period to pay taxes, settle debts, or cover immediate expenses.
Families change
Divorce, remarriage, new children, charitable giving, creditor claims, lawsuits, and changes to estate documents can all affect who receives assets and how much they receive.
Even when parents intend to leave money to their children, their plans may change over time. A verbal promise is not the same as a current will, trust, beneficiary designation, or other legally valid estate document.
The opportunity cost of saving less
The most damaging consequence may happen before an inheritance ever arrives.
If someone saves less, contributes less to a workplace retirement plan, or takes on more debt because they expect future family money, they lose valuable time for their own assets to grow.
For example, a worker who reduces retirement contributions by $500 per month for 20 years gives up $120,000 in contributions alone. Investment growth could make the opportunity cost much larger.
That is why your retirement plan should work without an inheritance. If family money eventually arrives, it can improve your financial position instead of rescuing it.
What don’t we know?
The LendingTree study provides important information, but it does not tell us how much money each prospective heir expects to receive or whether those expectations are realistic.
Several important questions remain unanswered.
We do not know the expected dollar amounts
The survey measures whether people expect an inheritance or financial gift, not the specific value of those transfers. A person expecting $10,000 and a person expecting $1 million are both included in the same broad category.
Those amounts would have very different effects on retirement planning.
We do not know when the money will arrive
An inheritance may arrive decades from now. It may also arrive after the expected heir has already retired, purchased a home, paid for college, or made other major financial decisions.
Timing is especially important for people who plan to stop working based on an anticipated transfer. A delayed inheritance cannot cover an income gap that begins today.
We do not know whether expectations match estate documents
Only 57% of prospective heirs say they have clearly discussed their expectations with the person they expect to receive money from.
Another:
- 28% have discussed the subject only broadly
- 16% have not discussed it at all
That means many people may be making financial decisions based on assumptions rather than confirmed information.
A family conversation can reduce confusion, but even a conversation should not replace legal documents. Estate plans can change, and potential heirs may not know about debts, taxes, account ownership, beneficiary designations, or other obligations.
The $17.2 trillion estimate is not a guarantee
The projected $17.2 trillion represents modeled wealth transfers from older homeowners over a 20-year period. It is not a promise that $17.2 trillion will be distributed evenly among heirs.
The estimate depends on assumptions about home values, total net worth, mortality rates, and the percentage of wealth that remains available to transfer. It also includes wealth that may be distributed in different ways, including to family members, trusts, charities, or other recipients.
What should readers do next?
The safest approach is simple: Plan as if no inheritance will arrive. Treat any inheritance as a potential bonus.
That does not mean you should ignore legitimate family planning. It means your financial security should not depend on another person’s future health, spending, investment results, or estate decisions.
1. Build your own retirement baseline
Estimate how much income you may need from:
- Social Security
- Workplace retirement accounts
- Individual retirement accounts
- Taxable investments
- Pension income
- Part-time work or business income
- Real estate or other assets
Then compare that income with your expected retirement expenses. Include housing, healthcare, insurance, taxes, transportation, travel, family support, and inflation.
If the numbers do not work without an inheritance, focus on the gap now. Consider increasing savings, paying down expensive debt, working longer, reducing future expenses, or obtaining professional financial guidance.
2. Increase savings gradually
You do not need to solve retirement in one move. Increasing your retirement contribution by 1% of pay can be a practical starting point. Directing raises, bonuses, or side-hustle income toward long-term savings can also build momentum without requiring a major lifestyle change.
Review your workplace plan, IRA options, and investment costs. A diversified, long-term approach is generally more dependable than waiting for a single future event.
3. Start a respectful family conversation
If an inheritance could affect your financial decisions, ask questions before you make those decisions.
You might begin with:
“I am working on my long-term financial plan. I do not want to make assumptions about your money, but I would like to understand how you want your estate handled and where important documents are located.”
Focus on process rather than demanding a dollar amount. Useful topics include:
- Whether an estate plan exists
- Who has power of attorney
- Who is named as executor or trustee
- Whether beneficiary designations are current
- How potential healthcare and long-term care costs will be handled
- Where wills, trusts, insurance policies, and account information are stored
- Whether any assets are intended to be given during life rather than after death
The goal is clarity, not pressure.
4. Prepare for unexpected costs
Your personal plan should include protection against financial shocks. Build an emergency fund, maintain appropriate insurance, and avoid high-interest debt that could undermine your retirement savings.
ATMC’s guide on how to prepare for unexpected costs in life offers practical steps for strengthening your financial cushion.
5. Get professional help when the situation is complex
Estate planning and tax rules can be complicated, particularly when a family owns real estate, a business, investment accounts, or property in multiple states.
An estate-planning attorney can help with wills, trusts, powers of attorney, and other legal documents. A financial professional can help evaluate retirement income, investment risk, and cash flow. A tax professional can explain possible tax consequences.
The important point is to get advice based on the actual plan, not an informal expectation.
The LendingTree study does not say inheritances are unimportant. It shows that many Americans may be giving them too much weight in retirement planning. Build a financial life that can stand on its own. If an inheritance arrives, use it to create more freedom, security, and flexibility.
Frequently Asked Questions
How many Americans expect an inheritance?
LendingTree found that 33% of Americans younger than 65 expect to receive an inheritance or financial gift in the future. The figure rises to 53% among those earning $100,000 or more and 43% among Gen Z adults ages 18 to 29.
Is it safe to count on an inheritance for retirement?
No. An inheritance may be reduced by healthcare costs, long-term care, inflation, investment losses, taxes, debt, divorce, remarriage, or changes to an estate plan. Your retirement plan should work without an inheritance.
What can reduce the size of an inheritance?
Long-term care, medical expenses, housing costs, inflation, market losses, taxes, debt, charitable gifts, legal claims, and family changes can all reduce the assets eventually passed to heirs.
How do I talk to my parents about inheritance?
Start with respect and avoid making the conversation sound like a demand for money. Explain that you are organizing your long-term financial plan and want to understand their wishes, the location of important documents, and who is responsible for handling their affairs.
What should I do if I expect an inheritance?
Continue saving for retirement, manage debt, maintain an emergency fund, and make major financial decisions based on assets you currently own. If the inheritance eventually arrives, consider using it to strengthen your retirement income, eliminate expensive debt, or improve your financial resilience.
How much wealth is expected to be passed down?
LendingTree estimates that homeowners age 65 and older could transfer approximately $17.2 trillion between 2026 and 2045, averaging about $859 billion annually. This is a model-based projection, not a guaranteed amount for individual families.
Metadata Block
Byline: Ask The Money Coach Editorial Team
Series: Surveys That Count
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SEO Title: AskTheMoneyCoach: 81% of Americans Expecting an Inheritance Are Counting on It for Retirement
Meta Description: LendingTree found that 81% of Americans expecting an inheritance are relying on it for retirement. Learn why that is risky and what to do instead.
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Excerpt: LendingTree estimates that older homeowners could pass down $17.2 trillion by 2045, but 81% of prospective heirs are already counting on an inheritance for retirement. Here is why that strategy is risky and how to build a plan that works without family money.
Image Prompt: Create a polished editorial personal-finance illustration showing an adult couple reviewing a retirement plan during a respectful conversation with an older parent. Include a kitchen table, simple financial documents, a calculator, and subtle visual contrast between a strong personal savings foundation and an uncertain future inheritance. Use warm natural light, diverse American family representation, and a sophisticated blue, cream, and muted gold palette. No visible text, logos, or dollar bills.
Internal Links:
- How to Prepare for Unexpected Costs in Life
- How to Raise Financially Confident Kids
- How to Build a $500 Emergency Fund
Primary Source:
Secondary Sources:
- Newsweek coverage of the LendingTree findings, published September 4, 2026
- MarketWatch coverage of inheritance and retirement planning
AskTheMoneyCoach Staff is the collective byline for our editorial team. Founded by Lynnette Khalfani-Cox, The Money Coach®, and Earl Cox, AskTheMoneyCoach.com publishes practical, research-informed guidance on credit, debt, saving, consumer protection, and everyday money decisions. Our work follows the site’s editorial standards and helps readers understand their options and make informed choices.
